A Firm's Operating Cash Flow (OCF) Is Defined as ________

question 46

Multiple Choice

A firm's operating cash flow (OCF) is defined as ________.

• A) gross profit minus operating expenses
• B) gross profit minus depreciation
• C) EBIT times one minus the tax rate plus depreciation
• D) EBIT plus depreciation

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Definitions:

Account Payables

Accounts payable refers to short-term financial obligations or debts a company owes to its suppliers or creditors for goods and services received.

Annual Cost

The total expenses incurred by a company or individual in one year.

Market/Book Ratio

A financial ratio comparing a company's market value to its book value, indicating how highly the market values the company.

Stock Price

The current price at which a share of a company is bought or sold in the stock market.